Morgan Stanley analyst Jamie Rollo maintained a Sell rating on InterContinental Hotels today and set a price target of p8,800.00.
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Jamie Rollo has given his Sell rating due to a combination of factors affecting InterContinental Hotels. Despite the company reporting a strong first half with revenue and earnings surpassing expectations, there are concerns about the sustainability of these results. The RevPAR growth has shown signs of slowing down, particularly in the Americas, which could indicate potential challenges in maintaining revenue momentum.
Additionally, while the company has benefited from cost efficiencies and ancillary revenue streams, these may not be sufficient to offset the anticipated easing in RevPAR for the full year. The market performance of InterContinental Hotels is also relatively average compared to its global peers, which may limit its competitive edge. As such, Jamie Rollo’s rating reflects caution about the company’s ability to sustain its current performance levels in the face of these headwinds.
According to TipRanks, Rollo is a 2-star analyst with an average return of 0.4% and a 54.61% success rate. Rollo covers the Consumer Cyclical sector, focusing on stocks such as Carnival, InterContinental Hotels, and Mitchells & Butlers.
In another report released on August 5, Citi also maintained a Sell rating on the stock with a £79.00 price target.